Bill Text: NJ A4494 | 2020-2021 | Regular Session | Introduced
Bill Title: Revises method used to determine State subsidies to child care providers.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-08-10 - Introduced, Referred to Assembly Women and Children Committee [A4494 Detail]
Download: New_Jersey-2020-A4494-Introduced.html
Sponsored by:
Assemblywoman AURA K. DUNN
District 25 (Morris and Somerset)
SYNOPSIS
Revises method used to determine State subsidies to child care providers.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning State subsidies to child care providers and supplementing P.L.1983, c.492.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Child care services" means those services for which the State and the federal government provide subsidy payments to licensed child care providers pursuant to the "Child Care and Development Block Grant Act of 1990," Pub.L.97-35 (42 U.S.C. s.9857 et seq.), as amended.
"Child Care and Development Fund" (CCDF) means the federal block grant to state, territory, and tribal governments, authorized pursuant to the "Child Care and Development Block Grant Act of 1990," Pub.L.97-35 (42 U.S.C. s.9857 et seq.), as amended, that supports low-income families in paying for quality child care services for children up to the age of 13 years.
"Eligible child" means a child who:
a. is under 13 years of age and resides with a family that meets income eligibility and participation requirements for subsidized child care under the "Child Care and Development Block Grant Act of 1990," Pub.L.97-35 (42 U.S.C. s.9857 et seq.), as amended;
b. is under 19 years of age and has a diagnosed physical or intellectual disability that renders the individual incapable of independent self-care; or
c. receives child protective services from the Division of Child Protection and Permanency in the Department of Children and Families.
"Eligible family" means an eligible child and the child's parent by blood, marriage or adoption, and also means a legal guardian, or any other person having responsibility for, or custody of, a child or standing in "loco parentis."
2. a. Subsidy payments to a provider of child care services shall be based on the following factors:
(1) the number of children enrolled with the provider on a full-time basis who are eligible for subsidized child care services, as certified by the Division of Family Development within the Department of Human Services;
(2) the number of children enrolled with the provider on a part-time basis who are eligible for subsidized child care services, as certified by the Division of Family Development within the Department of Human Services;
(3) the age of the eligible child; and,
(4) whether the eligible child has a medically diagnosed developmental or intellectual disability.
b. At no time shall subsidy payments to a provider of child care services, pursuant to subsection a. of this section, be based on the number of days that an eligible child has been in attendance at child care services.
c. The Commissioner of Human Services shall apply for such State plan amendments or waivers as may be necessary to implement the provisions of this section and to continue to secure any available federal financial participation for the applicable child care programs.
3. The Commissioner of Human Services, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) shall adopt rules and regulations necessary to implement the provisions of this act.
4. This act shall take effect immediately.
STATEMENT
This bill would revise the methodology used to calculate State subsidy payments, under the federal "Child Care and Development Block Grant Act of 1990," Pub.L.97-35 (42 U.S.C. s.9857 et seq.), as amended, to child care providers that serve low-income children. The purpose of the subsidies is to ensure equal access, for eligible low-income families, to child care services comparable to those provided to families not eligible to receive Child Care and Development Fund (CCDF) assistance or child care assistance under any other federal, State, or tribal programs.
Under the bill, the Division of Family Development (DFD) within the Department of Human Services would pay subsidies to a child care provider based upon the number of enrolled children who qualify for subsidized care. In calculating payments to a child care provider, the DFD would consider:
1) the number of children enrolled with the provider on a full-time basis who are eligible for subsidized child care services;
2) the number of children enrolled with the provider on a part-time basis who are eligible for subsidized child care services;
3) the age of the eligible child; and
4) whether the eligible child has a medically diagnosed developmental or intellectual disability.
New Jersey's current Child Care and Development Fund (CCDF) State Plan, which covers CY 2019 - 2021, bases child care subsidy payments on a child's attendance over a two-week service period. The DFD makes a full subsidy payment if a child attends child care services at least 80 percent of the two-week period. Subsidy payments to child care providers are higher for infants, toddlers and children with a diagnosed developmental or intellectual disability in order to compensate providers for the higher intensity of care services that these children require. Payment to child care providers for sick days is authorized for a maximum of ten consecutive days; however, a request for more than five sick days is only authorized upon submission of a doctor's note substantiating the illness of the child or parent or guardian. An absence for any reason other than sick days, scheduled holidays or approved child care facility closings is deemed an unexcused absence for which the child care service provider will not receive payment.
It is the intent of the bill's sponsors to provide relief to financially-struggling child care providers by basing subsidy payments on enrollment, rather than attendance. This change in payment methodology would offer child care providers, whose businesses have been severely impacted by the novel coronavirus 2019 (COVID-19) pandemic, with a more reliable source of income. Child care providers, particularly those who offer home-based care, have faced soaring overhead costs associated with smaller class sizes, new cleaning protocols, and mandates for personal protective equipment for child care staff. By changing the methodology used to calculate subsidies to child care providers, the State would offer a financial lifeline to these essential small business owners.
